House Bill Threatens Texas DREAM Act, Advocates Warn

The Texas Civil Rights Project (TCRP) is opposing House Bill 232, a proposal that advocates say would dismantle the Texas DREAM Act and block access to in-state tuition for undocumented students who have lived in Texas for years.

Heard on April 29 in the House Committee on Higher Education, HB 232 removes key provisions that allowed undocumented students to qualify for in-state tuition if they graduated from a Texas high school and maintained residence in the state. Instead, it imposes new restrictions requiring students to have established and maintained a domicile in Texas for at least one year before the census date of the academic term. The bill also introduces a legal presence requirement, explicitly prohibiting students not authorized under federal law from being classified as residents for tuition purposes.

Texas was the first state in the nation to extend in-state tuition benefits to undocumented students when lawmakers passed House Bill 1403 in 2001, widely known as the Texas DREAM Act. The law allows students without legal immigration status to qualify for in-state tuition if they graduate from a Texas high school and meet residency requirements.

Over the past two decades, the policy has helped thousands of students afford college, contributing to Texas’ economy and workforce. Since then, 25 other states have adopted similar measures, recognizing the long-term benefits of expanding access to higher education.

Though HB 232 does not formally repeal the Texas DREAM Act, TCRP says it overrides the law’s core protections. Danny Woodward, Policy Attorney at TCRP, testified against the bill during the hearing, highlighting the real-life impact it would have on students like Jason — a Texas valedictorian, DREAMer, and student living with a disability.

“This bill moves us in the wrong direction,” said Woodward. “It threatens the futures of students like Jason…who has overcome incredible odds to pursue an education. Jason considers himself a ‘high return on investment’ individual, and he is right. Bills like HB 232 do nothing but squander the promise and potential of Texans like him.”

In addition to eliminating the long-standing residency route based on high school graduation, HB 232 allows public colleges and universities to verify a student’s residency status and reclassify students as nonresidents before a semester begins if they no longer meet the new requirements. TCRP warns that this could result in students being charged out-of-state tuition retroactively, even after graduation.

While Senate Bill 1798 has drawn similar criticism, TCRP says HB 232 is even more insidious because of its complex eligibility rules and the uncertainty they create for immigrant students.

“Texas has long been a national leader in recognizing the potential of all students, regardless of immigration status. HB 232 breaks with that legacy,” Woodward said. “Instead of creating more barriers, lawmakers should focus on strengthening access to education and investing in every young Texan’s future.”

If passed, HB 232 would take effect on September 1, 2025.

Senate Companion Bill Pushes Even Further

While HB 232 targets tuition access for undocumented students, its Senate counterpart goes even further. The Senate version, SB 1798, would allow universities to withhold a student’s diploma if they fail to pay the out-of-state tuition difference within 30 days of notification — provided the diploma hasn’t already been awarded.

The legislation would also prohibit public colleges and universities from using any state funds to offer financial aid to undocumented students. Institutions would be required to report students they suspect of misrepresenting their immigration status to the Texas Attorney General’s Office. State funding would be contingent on compliance.

Immigration restrictionist groups have welcomed the Senate’s more aggressive provisions. Chris Russo, president of Texans for Strong Borders — an organization with ties to white nationalist movements according to The Texas Tribune – praised the bill, saying it is a step toward eliminating “incentive structures.”

“This dismantles one of the many incentive structures that help drive illegal immigration into our state. Certainly not the biggest incentive structure, but one of a plethora,” said Russo.

The Senate’s K-16 committee voted 9-2 on Tuesday to bring Senate Bill 1798 to the chamber’s floor for a full vote. It would eliminate undocumented students’ eligibility for in-state tuition and require those previously deemed eligible to pay the difference between in- and out-of-state tuition.

SB 1798 now awaits debate and a vote by the full Senate.